Circle8 Group, Inc. disclosed that its subsidiary, Lyneer Staffing Solutions, has received multiple notices of default, culminating in a notice from its senior secured lender of a potential sale of substantially all of Lyneer's assets. The events began with an alleged payment default to a service provider, which triggered cross-default notices from other lenders.
Key Details
- Initial Default: Lyneer Staffing received a notice of default from its professional employer organization (PEO), Employers Personnel, LLC, for alleged non-payment.
- Lender Default Notices: Following the PEO notice, SPP Credit Advisors, LLC notified Circle8 of events of default under both a Financing Agreement and a Bridge Loan Agreement, citing cross-default provisions.
- Potential Asset Sale: On October 15, 2026, senior secured lender SLR Business Credit notified Lyneer of its intent to sell substantially all of its assets in a private sale on or after October 27, 2026.
- Company Position: Circle8 Group is in discussions with the PEO and SPP to resolve the alleged defaults and stated it disputes the validity of the asset sale notice from SLR Business Credit.